South African Control and Influence over the Precious Metals Market

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South Africa is a rich and fertile country teeming with subterranean precious metals waiting to be harvested and sold. In recent months, however, South Africa’s metals production has been stagnant, as miners have gone on strike and refused to work, resulting in 75,000 miners quitting spontaneously.

Today, South Africa accounts for over 95 percent of the world’s platinum, and 12 or more percent of the world’s supply of gold.

Because of South Africa’s dominant control of these metals, the entire industry rests on the shoulders of South African metal production companies and mines, which rely on their workers to extract these valuable metals from the earth, stimulating the consistent flow of platinum and gold production.

South African miners are fed up with the danger that accompanies their profession, and in a recent mining collapse, 63 miners lost their lives on the job. With unstable and unsafe conditions, mines are being forced to close, and miners are increasingly dissatisfied and hesitant to return to work.

With the recent stagnation of platinum and gold production from South Africa, the precious metals market has been impacted severely, and statistics emphasize just how significant these production cuts have been. From 2011 to 2013, South Africa produced 4.1 million ounces less, yielding an expected 400,000 ounces, in contrast with the 4.5 million from 2011. Palladium supplies have also experienced a decline, falling by nearly 8 percent since 2011.

As the state of flux in the South African mining industry continues, prices continue to fluctuate inconsistently, as the rest of the world attempts to restructure the market so as not to rely on South African contributions and sales of these metals. If this continues and the market stabilizes itself, the return of South African miners and precious metals production could actually decrease the values of these metals, particularly gold, to lower and lower values.

With each South African mine strike, the price of platinum can change erratically, making it one of the more risky choices for precious metals investing. Because of its unpredictable nature, platinum has the potential to yield extremely high profits, but is also at risk for substantial losses in turn.

Precious metals investors need to be up to date on South Africa’s mining situation and status, because as evidenced by statistical analyses, South Africa’s clout over this industry and market in general is extremely important, and has a direct effect on anyone who has invested in precious metals. Through sites such as monex.com, infomine.com, and goldmoney.com, you can stay up to date on the occurrences and updates that cause changes in the market, providing you with the information you need, fast.

With the assistance of these websites and others, you can place a firm grasp on the precious metals market, and utilize these important facts and updates to manage and trade your investment portfolio.

Research and market updates are important to anyone who is interested in safe investing, and through these websites, you can safely and profitably manage your accounts and investments.